Cost Control, Consumers Bolster Bank of Hawaii

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Earnings per share were up 28%, at 78 cents, the Honolulu company said Monday. That beat the average of analysts' forecasts by 4 cents.

Allan Landon, who became chairman and chief executive officer Sept. 1, said the $9.6 billion-asset company is succeeding in increasing revenue and reducing credit risk. His predecessor Michael O'Neill set that strategy; he left saying he had completed a three-year turnaround.

"Our plan looks pretty good," Mr. Landon said in an interview. "It's business as usual; no big changes."

Bank of Hawaii raised its full-year net income forecast to $166 million to $168 million; this summer it had projected $163 million to $167 million. It also said Monday that its board had voted to boosted the dividend 10%, to 33 cents.

He called the bank's balance-sheet performance "pretty impressive," singling out its ability to increase core deposits. The company added 2,000 no-interest checking accounts. Time deposits fell 14% from a year earlier, to $1.05 billion.

Consumer demand propelled loans 5% above the year-earlier level. Commercial lending continued to lag. Commercial and industrial loans averaged $796.2 million, down 8% from a year earlier. Gains were overcome by prepayments as interest rates dipped.

Nonperforming assets were $16 million at the end of the quarter, down 60% from a year earlier and 24% from midyear. …